Whitmore Corporation Issues a £3,000,000, 10%, 10-Year Mortgage on December

question 54

Multiple Choice

Whitmore Corporation Issues a £3,000,000, 10%, 10-year mortgage on December 31, 2014. The terms call for semi-annual installment payments of £240,725.The entry to record the first installment payable will include

• A) a debit to Interest Payable of £240,725.
• B) a debit to Mortgage Payable of £90,725.
• C) a debit to Interest Expense of £300,000.
• D) a credit to Cash of £240,725.

---

Definitions:

Flash Flood

A local and sudden flood of short duration, such as that which may follow a brief but heavy rainfall.

Global Warming

Increasing global atmospheric and oceanic temperatures as measured or inferred from some point in the past to the present.

Lithosphere

The rigid outer layer of the earth, including the crust and upper mantle, which is divided into tectonic plates.

Biosphere

The global sum of all ecosystems, including all living organisms and their relationships to each other and to their environments.